Here Is Our Reasoning
Apple (AAPL), on Tuesday, held its highly anticipated iPhone event to reveal the next generation of smartphones. With expectations being so high regarding a multitude of product/service releases, we were worried that they could end up disappointing. Most of you probably watched some or all or the live event, including highlights of animated poop emojis, which probably illustrates how a good chunk of people feel about APPL after the experience.
So what did we learn? Firstly consumers are definitely going to have to pay for these new devices. The entry-level new iPhone 8 will start at $699 for a 64GB storage model, up from the $649 price we saw with the 32GB iPhone 7. Secondly the new high end device (the “X”) will start at $999, but it won’t be available until early November (but you know that will get delayed), and it only starts with 64GB of storage, which tech bloggers say it should have been higher for this price. We are likely to see a number of analyst estimate cuts coming thanks to this availability schedule.
We are curious to see if this new price structure results in more consumers trading down to the SE, or potentially waiting to see if a second edition SE is launched in Spring 2018. What we do know is that the new price structure will result in a rise in average selling prices for the overall device, and some analysts were hoping for a 512GB version, primarily on the X, that would help even more on the ASP front. That did not happen today.
Thirdly there was no discussion of the HomePod, the next major device that everyone is waiting to get their hands on later this year. There was also no release of a second version of AirPods that some were hoping for. Finally, there was nothing on the Mac front, whether it be a discussing of the operating system or a showing of new models. Same for the iPad.
We did get a launch of Apple 4K TV and a new Apple Watch series that features LTE on the higher end model. Unexpectedly the company lowered the price of Watch 1 but didn’t mention the second edition. Apple did finally unveil its wireless charging, including its own new wireless mat, but you’ll have to wait until 2018 for the mat. These are nice new features, but as most AAPL analysts will you, Apple is just trying to catch up to its competitors in most of these items.
Apple (AAPL), on Tuesday, held its highly anticipated iPhone event to reveal the next generation of smartphones. With expectations being so high regarding a multitude of product/service releases, we were worried that they could end up disappointing. Most of you probably watched some or all or the live event, including highlights of animated poop emojis, which probably illustrates how a good chunk of people feel about APPL after the experience.
So what did we learn? Firstly consumers are definitely going to have to pay for these new devices. The entry-level new iPhone 8 will start at $699 for a 64GB storage model, up from the $649 price we saw with the 32GB iPhone 7. Secondly the new high end device (the “X”) will start at $999, but it won’t be available until early November (but you know that will get delayed), and it only starts with 64GB of storage, which tech bloggers say it should have been higher for this price. We are likely to see a number of analyst estimate cuts coming thanks to this availability schedule.
We are curious to see if this new price structure results in more consumers trading down to the SE, or potentially waiting to see if a second edition SE is launched in Spring 2018. What we do know is that the new price structure will result in a rise in average selling prices for the overall device, and some analysts were hoping for a 512GB version, primarily on the X, that would help even more on the ASP front. That did not happen today.
Thirdly there was no discussion of the HomePod, the next major device that everyone is waiting to get their hands on later this year. There was also no release of a second version of AirPods that some were hoping for. Finally, there was nothing on the Mac front, whether it be a discussing of the operating system or a showing of new models. Same for the iPad.
We did get a launch of Apple 4K TV and a new Apple Watch series that features LTE on the higher end model. Unexpectedly the company lowered the price of Watch 1 but didn’t mention the second edition. Apple did finally unveil its wireless charging, including its own new wireless mat, but you’ll have to wait until 2018 for the mat. These are nice new features, but as most AAPL analysts will you, Apple is just trying to catch up to its competitors in most of these items.
Overall, Apple’s event on Tuesday was
basically disappointing. The company did show off some flashy new
iPhones, including the very expensive iPhone X. Some consumers may be a
bit put off by the price raise for the new regular phones, although the
company did introduce some new features like wireless charging. But
there was no news regarding the HomePod, AirPods 2, Mac, etc.
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